Petrol Price May Crash To ₦1,200 As Dangote Slashes Depot Rate

According to Ireporter Online, petroleum marketers have projected that the pump price of Premium Motor Spirit (petrol) could decline to around ₦1,200 per litre following a recent reduction in ex-depot prices initiated by the Dangote Petroleum Refinery.

The development comes after the refinery reportedly reduced its gantry price by ₦75 per litre, bringing it down from ₦1,250 to ₦1,175. The adjustment was linked to a fall in global crude oil prices, driven by easing geopolitical tensions after reported diplomatic progress between the United States and Iran, which helped calm the international energy market.

Following the refinery’s price review, depot operators across the country also adjusted their rates, with petrol reportedly selling at about ₦1,180 per litre at various depots. Despite these reductions at the supply level, retail stations have yet to reflect the changes, as many continue to sell petrol at approximately ₦1,280 per litre. Marketers attribute the delay to the need for outlets to exhaust existing stock purchased at higher prices before implementing new pricing.

In a formal communication to marketers, the Dangote Petroleum Refinery explained that the price adjustment was necessitated by recent developments in the global energy market, noting that changes in international crude oil dynamics influenced the decision. The refinery also confirmed that the revised gantry price stands at ₦1,175 per litre, while the coastal price per metric tonne was reduced from ₦1,595,790 to ₦1,495,215, with immediate effect from midnight.

Industry stakeholders noted that crude oil prices have declined significantly in recent days, dropping below previous highs recorded during periods of heightened geopolitical tension. Brent crude, which had surged to about $120 per barrel at the peak of the crisis, reportedly fell to around $78 per barrel following renewed diplomatic engagement and easing tensions.

Market analysts and petroleum marketers say the downward trend in crude prices is expected to gradually reflect in domestic fuel pricing. They project that once new stock enters circulation, petrol could retail between ₦1,200 and ₦1,250 per litre in major commercial centres such as Lagos, while prices in more remote areas may remain higher due to transportation and distribution costs.

However, marketers also emphasized that pricing adjustments in the downstream sector typically lag behind depot reductions, as retailers work through previously purchased inventory. They explained that fuel distribution often slows temporarily after new pricing announcements, allowing marketers to manage old stock before fresh supplies are loaded and distributed into the market.

Meanwhile, concerns have been raised by petroleum retail stakeholders over price competitiveness, with some industry voices arguing that imported fuel appears to be cheaper than locally refined products. They have urged regulatory authorities to consider expanding import licensing to improve supply dynamics and promote price stability.

Consumer reactions have also been mixed, with some Nigerians expressing expectations that the recent reduction should have been more significant, given the extent of the drop in global crude oil prices. Despite this, industry players maintain that further price adjustments are likely if the current downward trend in the global oil market continues.

Petrol prices in Nigeria had previously surged significantly during a period of global supply disruptions, rising from about ₦830 per litre to nearly ₦1,300 per litre, alongside similar increases in diesel and aviation fuel. With current market conditions showing signs of easing, stakeholders anticipate a gradual moderation in domestic fuel prices in the coming days.